First-Degree or Perfect Price discrimination Practice of charging each consumer the maximum amount he or she will pay for each incremental unit Permits a firm to extract all surplus from consumers Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 First-Degree or Perfect Price Discrimination • Practice of charging each consumer the maximum amount he or she will pay for each incremental unit • Permits a firm to extract all surplus from consumers